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This chapter examines the interaction between public programmes and private transfers. It analyses the PROGRESA — a large welfare programme in rural Mexico aimed at fostering the accumulation of human capital by increasing school enrolment, improving nutrition, and health practices. The programme crowded out private transfers. It negatively affected the likelihood of receiving a transfer and the amount received.

This chapter examines the interaction between public programmes and private transfers. It analyses the PROGRESA — a large welfare programme in rural Mexico aimed at fostering the accumulation of human capital by increasing school enrolment, improving nutrition, and health practices. The programme crowded out private transfers. It negatively affected the likelihood of receiving a transfer and the amount received.